Good MorningEquity markets retreat for the third day running and momentum is building in the wake of the FOMC statement. The FOMC hiked rates by an historic 75 basis points on Tuesday and aims to hike by another 150 to 175 basis points by next summer. The move has the rate on the 30-year mortgage up to 7.0% and rising which is sure to cut even deeper into home building activity. Reports from Lennar and KB Home show demand is still strong but starting to fall off under the pressure of rising prices and higher rates. At the pace the FOMC is going, the housing industry is facing a contraction in revenue and earnings that could begin early next year and lead to a deepening recession in America.
The S&P 500 fell about 0.85% extending the downdraft that began two weeks ago. The move is driven by inflation, the FOMC, and their impact on the outlook for earnings which is in decline. The technical signals are clear, the S&P 500 is in a major correction and it could be another 2 to 3 quarters before the selling is over. Featured: The 7 Stocks Quietly Gaining Attention Right Now (Ad) 
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Consumer Staples | | Costco (NYSE: COST) put in a strong quarter, but there are two things wrong with the report that means the strength was already priced into the market. The first is a similar report from BJ’s Wholesale Club (NYSE: BJ) last month, a report that indicated strength in the membership club arena as... Read the Full Story |
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From Our Partners | | A drilling crew near the Grand Canyon uncovered a clean energy well producing nearly eight times the output of Saudi Arabia's largest oil field, with potential to last two million years.
While the One Big Beautiful Bill Act eliminated federal credits for solar, wind, and EVs, this energy source was reclassified alongside oil and nuclear power and given eight years of tax credits. Google signed a 15-year contract, and Bill Gates committed $100 million.
One company controls the entire supply chain behind this discovery. | | See the ticker behind this Grand Canyon energy breakthrough now |
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Technology | |
After recent boom years, investors in the semiconductor industry have experienced a rough year so far in 2022. You only need to look at the VanEck Semiconductor ETF (NASDAQ:SMH) to see how punishing this year has been to chip investors. A leading chip stocks fund with more than $6 billion in net a... Read the Full Story |
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Technology | | Cybersecurity specialist Crowdstrike (NASDAQ: CRWD) had a terrific run in 2020 and into 2021, but along with other techs, this former growth-stock favorite has been languishing.
But much of that decline is due to interest-rate increases, along with the broader market pullback.
What’s the lo... Read the Full Story |
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From Our Partners | | Rumors are circulating that Elon Musk is preparing to acquire three publicly traded companies.
Dr. Mark Skousen, who met Musk in person and called the SpaceX listing months early, says he has identified all three targets in what he calls Elon's $2.1 Trillion Hit List.
See the three companies before the rumors become headlines. | | Get the details on all three companies now |
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Real Estate | |
Small-cap Compass (NYSE: COMP), which runs an end-to-end platform for buying, selling, and renting real estate, lost its way Thursday, drifting more than 6% lower in heavy volume after announcing layoffs.
Compass has been in a death spiral since its IPO in April, 2021. Soon after it went public a... Read the Full Story |
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Industrials | | Steelcase (NYSE: SCS) stock is dropping following a mixed earnings report. In this case, the company beat on earnings but missed on revenue.
Normally, higher profits would be a cause for celebration. In this earnings season, however, investors are paying more attention to the company’s guid... Read the Full Story |
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From Our Partners | | AI is expanding beyond software into robots, factories, vehicles, and intelligent machines. That shift could create a new group of market leaders before most investors notice.
A complimentary report, 5 Stocks Powering the Physical AI Revolution, identifies five companies positioned at the center of this shift, along with the technologies, growth drivers, and risks to understand. | | Get your free copy before physical AI becomes Wall Street's next crowded trade |
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Consumer Discretionary | | Darden Restaurant International (NYSE: DRI) boasts a high 90% institutional ownership and the institutions are holding on to the shares. Not only has the total institutional activity fallen to low levels from its peak two years ago but the net of activity is bullish for the past 12 months and the wo... Read the Full Story |
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Consumer Discretionary | | It was just a year or so ago that Wall Street pundits were touting a Golden Age for the homebuilders (NYSEARCA: XHB) like Lennar (NYSE: LEN) and KB Home (NYSE: KBH). The combination of low-interest rates, high demand for homes, a lifestyle shift brought on by the pandemic, and pandemic stimulus had ... Read the Full Story |
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Utilities | | Key Points:
Dividend-paying stocks can help offset price declines in a volatile market
Certain industries, like utilities, are fairly reliable dividend payers
Dividend increases reflect the company’s earnings growth
Dividend payers like Black Hills (NYSE: BKH), Unum Group (NY... Read the Full Story |
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Consumer Staples | |
Target is managing through an earnings recession.
The retailer should be able to count on strong revenue, but it may not translate to earnings.
Dividend investors may still find the company’s dividend appealing.
Long before the words “earnings recession” became part of ... Read the Full Story |
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Consumer Discretionary | |
A screen of stocks the insiders are buying will turn up two fun names poised to benefit from the rebound in travel; Six Flags Entertainment Corporation (NYSE: SIX) and MGM Resorts International (NYSE: MGM). These companies have more than one thing in common as well and that is support from the ins... Read the Full Story |
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Friday's Early Bird Stock Of The Day Nikola Corporation operates as a technology innovator and integrator that develops energy and transportation solutions in the United States and internationally. The company operates in truck and energy units. It commercializes battery electric vehicles (BEV) and hydrogen fuel cell electric vehicles (FCEV) to the trucking sector. In addition, it develops a network of hydrogen fueling stations; and offers BEV charging solutions for its FCEV and BEV customers, as well as other third-party customers. Further, its products include Nikola Tre Class 8 truck and the Nikola's Class 8 FCEV. Additionally, the company assembles, integrates, and commissions its vehicles in collaboration with its business partners and suppliers. Nikola Corporation founded in 2015 and is headquartered in Phoenix, Arizona. | | View Today's Stock Pick |
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